Asset Management

LGIM overhauls UK property fund amid sector liquidity fears

The £1.2bn L&G UK Property fund will adopt a 'hybrid' approach, investing equally in direct property and real estate investment trusts

L&G's fund is one of the few left standing in the sector after a wave of suspensions and closures
L&G's fund is one of the few left standing in the sector after a wave of suspensions and closures Photo: Mike Kemp/Getty Images

Legal and General Investment Management is set to overhaul its UK property fund amid pushback from investors and the regulator around liquidity issues plaguing the sector.

Under the new structure, LGIM will adopt a "hybrid" approach: 45% of the portfolio will be held in direct property, with 45% reallocated into shares of globally listed real estate investment trusts. The remaining 10% will be held in cash.

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